CIT Group: Economy Challenging Housewares, Brighter Days Ahead

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Despite ongoing challenges facing the retail sector and the economy, more than 70% of middle market housewares executives are forecasting stronger sales performance in 2014, according to a recent survey by CIT Group Inc. and Forbes Insights. While the outlook is positive, 50% indicate that the current economic conditions are placing a strain on financial performance, while 79% say their performance is closely linked to the U.S. economy.

Despite these challenges, more than a third (38%) see increased demand for upscale, premium products. And a similar number (34%) say that they are pursuing sales with customers who desire upscale, ergonomic, leading-edge technology and “high design” products. There is movement in more modestly priced housewares products, too; 30% of manufacturers say that they are aggressively pursuing this market.

“Manufacturers are telling us that they are seeing an uptick in demand [for housewares items], particularly in upscale items, and that’s a very good indicator that the economy is rebounding,” Jon Lucas, president of CIT Trade Finance, said.

The survey also revealed that:

One in four executives (27%) say that they are taking significant steps to shift offshore manufacturing back to the United States in an effort to help reduce shipping time (16%), improve quality (14%) and promote sales by being able to label products “Made in America.”

50% of housewares makers say that they are aggressively pursuing sustainability initiatives in their product lines.

Executives surveyed note that customers are demanding longer payment terms, while 45% said that their suppliers are demanding shorter payment terms.

45% of housewares manufacturers surveyed report that overall weakness in the retailing sector is harming their performance.

63% of housewares manufacturers polled report that while economic conditions play a significant role in their business, the quality of their products and services drives the most value in their business.

What’s New? That Is The Question
The Housewares Show will culminate what for many in this business has been a busy, compressed winter trade show schedule. The big question at every trade show big and small this year— and every year— ultimately boils down to “What’s new?”